Answer the Following Questions Using the Information Below

question 115

Multiple Choice

Answer the following questions using the information below:
Dr Charles Hunter,MD,performs a certain outpatient procedure for $1000.His fixed costs are $20 000,while his variable costs are $500 per procedure.Dr Hunter currently plans to perform 200 procedures this month.
-What is the margin of safety assuming 100 procedures are budgeted?

• A)$100 000 or 100 times
• B)$40 000 or 40 times
• C)$60 000 or 60 times
• D)$50 000 or 50 times